Connecticut’s Hedges Green Bets on Reverse Auction

In case you were not aware, Connecticut is about to enter into a new phase of how it will encourage and promote renewable power generation.  Some call it bold, some call it unique, and some call it controversial.  Phil Zahodiakin, a writer for AOL Energy, posted an article last week on AOL that explained this new way of encouraging investments in green power.  Here is Phil’s report.

Connecticut’s two public utilities will launch a renewable-electricity program when they hold the first in a series of reverse auctions to foster “green” generation.

The auctions will allow the companies’ customers to bid for millions of dollars in long-term contracts for the electricity they propose to produce through the installation of technologies eligible for the state’s Low- and Zero-Emissions Renewable Energy Credit (LREC/ZREC) Program.

The program, which is open to residential as well as commercial customers, was mandated by the state’s Energy Act of 2011.

Although the law specifies a wide range of energy mandates, the LREC/ZREC program “is a centerpiece of Gov. Dannel Malloy’s commitment to finding new approaches to how government works and to clean energy leadership, in particular,” Alex Kragie, special assistant to the Department of Energy and Environmental Protection (DEEP) commissioner, told AOL Energy.

The Two-Pronged Attack

In fact, stakeholders assert that Connecticut is the first state to mandate both a budget-driven and market-driven approach to promoting renewable-energy purchases by distribution companies.

Under a market-driven approach, the companies typically endeavor to meet their states’ renewable portfolio standards (RPS) by searching for the best energy deals. Under a budget-driven approach, there is a competition for the money available in an annual budget.

While market-driven approaches inevitably lead to far-flung energy purchases, the new program limits power purchases to the energy generated by customers of the Connecticut distribution companies, thereby promoting renewable-energy production, and job creation, within the state’s jurisdiction.

“There’s nothing exactly like this program anywhere else,” Kragie said. “We want to move away from the old model of overly rich subsidies and governments picking winners and losers among clean technologies, and we want to make this a competition to drive down costs.”

There’s nothing exactly like this program anywhere else,” Kragie said

The LREC/ZREC solicitation plan was approved by DEEP’s Public Utilities Regulatory Authority on April 4. The initial solicitation for project proposals should be issued “in a matter of weeks,” Christie Bradway, renewable power manager at Northeast Utilities subsidiary Connecticut Light & Power, told AOL Energy.

Under the program, the state’s distribution companies, CL&P and United Illuminating, will select the lowest bids for, and eventually purchase, the renewable energy credits (REC’s) issued to account for the winning bidders’ power production on the basis of one REC for each megawatt hour of electricity.

The maximum rate that the companies can pay for ZREC’s is $350 apiece; for LREC’s, the maximum is $200 apiece – although the assumption is that bids will come in south of those caps.

Bradway says that CL&P will be selling all the REC’s it purchases through this program because the company already has enough of them from its bundled, renewable-energy contracts to keep it on track to comply with the state’s 9% renewable portfolio standard mandate for 2012. (The mandate ratchets up to 20% in 2020.)

The companies will annually solicit (for the next six years) $8 million worth of 15-year ZREC contracts for the power produced with such zero-emissions technologies as solar, wind, and hydro. In addition, they will annually solicit (for the next five years) $4 million worth of 15-year LREC contracts for projects using such power sources as fuel cells, gasified biomass and landfill methane.

The REC money will be available from the distribution companies in a ratio reflecting their share of the Connecticut market. So, CL&P, with 1.23 million customers, will be soliciting bids for about 80% of the REC-contract money; UI, with 325,000 customers, will solicit bids for about 20%.

Size Matters

Unlike the LREC contracts, which will be offered for projects with nameplate capacities ranging up to 2.0 megawatt hours, the ZREC contracts will be divided into three categories: “small” (1-to-100 kilowatt-hour projects), “medium” (101-to-250 kWh projects), and “large” (250-to-1,000 kWh projects).

Parties proposing “small” projects won’t have to bid; rather, they will be “price takers,” as Bradway puts it, who will be offered a REC price equaling the average price for “medium”-project REC’s – plus 10% of that average (as a bidding incentive).

Paul Michaud, president of Connecticut’s Renewable Energy and Energy Efficiency Business Association, told AOL Energy that “there will be a role for wind energy” in the ZREC program, but added that “Connecticut doesn’t have a strong, statewide wind resource.” Consequently, most of the initial ZREC projects are likely to be solar, Michaud says.

He also praises the program as “very cleverly designed,” and expects all three tranches to be fully subscribed. (If all of the LREC and ZREC money isn’t allocated from the first 2012 auction, a second one will be held in October.)

UI spokesman Ed Crowder told AOL Energy that his company is “doing our best to make sure that it results in the greatest amount of renewable energy for the least amount of dollars.”

Bang for the Buck

Kragie stresses that keeping renewable-energy costs low is the key to the program.

“We are focused on driving down the cost of electricity through the reverse auction structure,” he said. “We’re trying to get the most bang for the ratepayers’ dollars while making sure that we’re fostering a competitive and very healthy marketplace for clean energy. We think the program will deploy hundreds of projects across the state by attracting as much investment as we can in renewable energy projects.”

“From what people tell me,” said Michaud, “other states will be watching the results of the Connecticut program very closely.”

Viridian Starts Third Reforestation Effort

Norwalk, Conn. – Viridian Energy, a leading provider of affordable, green energy, and based in Norwalk, CT, returned to the Amazon rainforest on Saturday, May 5, to begin their third tree planting excursion to Brazil. The biannual journeys are part of Viridian’s Amazon Preservation Project, an ongoing initiative launched in March 2011. A group of 29 Viridian Energy independent sales Associates, corporate leaders and guests will spend five days planting indigenous plants and trees in deforested areas of the Mamori region of the Amazon.

Deforestation in the Amazon is responsible for as much as 10% of the current global greenhouse gas emissions. Deforestation also threatens the existence of many animal species, and displaces indigenous communities and native villages. Through the Amazon Preservation Project, Viridian is creating a positive, measurable environmental, social and economic impact in the Mamori region.

“Viridian’s commitment to identify environmental needs, and plan sustainability projects throughout the world is a natural extension of our core mission and vision,” said Cami Boehme, SVP of brand communications for Viridian Energy and executive host of this spring’s journey. “Last year we started this project in Brazil. No matter where we live, all of us are impacted by the deforestation in the Amazon region. Viridian takes seriously its commitment to environmental sustainability. We are also seriously committed to finish what we started, and will not stop until the end goal is achieved. In this case restoring, replanting and preserving this region of the Amazon.”

This trip reinforces Viridian’s mission of local change, global vision. By traveling to Brazil bi-annually until Viridian meets its goal of planting 5,000 trees the company will be able to restore, protect, and preserve a portion of the Mamori region, making a significant positive impact on the indigenous communities, native villages and globally.

Viridian’s first trip to the Mamori region of Brazil in March 2011 marked the beginning of the company’s ’7 Continents in 7 Years’ corporate pledge in which Viridian undertakes a major sustainability project on each of the seven continents over a period of seven years. As an ongoing effort to support the work Viridian completed in its first visit to Brazil, Viridian returned to the region in November of 2011 and will return biannually over the next decade. The next trip is planned for November 2012.

EV Charging Station Opens in Norwich

Norwich, Conn. – According to The Day, officials who gathered last Tuesday for a ribbon-cutting ceremony next to the region’s first publicly accessible electric-vehicle charging stations at Norwich Public Utilities hailed the event as a historic turn in America’s reliance on foreign oil.

“Today is really historic, not just for Connecticut but for the nation,” said U.S. Sen. Richard Blumenthal, D-Conn., during a brief speech under a rain-soaked tent next to the municipal utility building on North Main Street where the four public charging stations are located. “There’s nothing more important than energy independence today. It’s a matter of national security.”

U.S. Rep. Joe Courtney, D-2nd District, pointed out that the $90,000 in local funding for the project, which also included the construction of compressed natural gas and biodiesel fuel facilities, was made possible through the 2009 federal stimulus package. The state received $13.2 million in federal funding under the American Recovery and Reinvestment Act, combined with more than $16 million in other monies under a partnership put together by the Connecticut Clean Cities Future Fuels Project.

While the compressed natural gas station is available to the public, the biodiesel facility is for use only by Norwich Public Utilities vehicles, according to utility spokesman Mike Hughes.

Norwich’s alternative-fuel site was the seventh to open in the state under the Clean Cities program.

Jeanne Kurasz, programs coordinator for Norwich Public Utilities, said the compressed natural gas station – selling fuel at only about $2 a gallon, versus more than $4 seen at many local gas pumps – is the only 24-hour, publicly available facility of its type in southeastern Connecticut. The public electric charging stations also are likely the only ones in the region, she said, though individual companies such as Pfizer Inc. are installing similar facilities for use by employees or customers.

Kurasz said members of the public wishing to use the charging stations would have to open an account and receive a card to access the facility and for billing purposes. People using the compressed natural gas station would have to be given an access code, she added.

Kurasz said Norwich hopes the addition of public electric-vehicle chargers and a site to acquire compressed natural gas will encourage more people in the region to buy alternative-energy vehicles. It takes three to four hours to fully charge a vehicle using Norwich’s so-called Level 2 charging station; Level 3 stations that could take as little as 20 minutes to repower a car are just starting to hit the market.

“This is our starting point,” Kurasz said.

The eight charging stations in Norwich, which include four that are meant to service utility vehicles only, were installed by Bonner Electric in Uncasville. The chargers themselves were built by Enfield-based manufacturer Electric Vehicle Supply Equipment, which uses components mostly from Connecticut companies.

Pete Polubiatko, coordinator of the Norwich Clean Cities program, and Jim Sullivan, chairman of the Norwich Utilities Commission, pointed out that the city has been at the forefront of alternative-energy efforts, having first leased electric vehicles more than a decade ago. It is now looking to aggressively add alternative-fuel vehicles to a fleet that includes dump trucks, service vans and a Chevy Volt.

“Norwich Public Utilities is an amazing institution because they have been doing this for over 10 years,” Courtney said.

Trahan To Lead Solar Consortium

Needham, MA – The Consortium for Solar Lighting (CSL), a group of manufacturers working to accelerate the global adoption of reliable solar lighting technology, has hired clean energy veteran Michael Trahan as executive director to lead the group’s effort to develop universal specifications to support consumers’ fair and comprehensive evaluation of commercial-scale lighting systems.

Trahan has served as executive director of statewide industry group Solar Connecticut, Inc. since 2008 during which time industry membership has quadrupled. Earlier this year, HeatSpring Magazine wrote that, “Mike Trahan is the hardest working man in solar,” mainly for his efforts to galvanize manufacturers, installers and state policy makers to adopt a set of America’s most progressive government policies toward residential and commercial solar power usage.

The CSL was created by some of the most active solar lighting product makers in North America to foster awareness and provide education in solar lighting and the applications where it is a viable alternative to conventional grid-connected lighting technology.

CSL founders include (in alphabetical order) Carmanah Technologies Corporation, Sharp Manufacturing Company of America, Sol, Inc., SolarOne Solutions, Inc., and Trojan Battery Company. More than sixty solar lighting manufacturers, researchers, educators and related businesses worldwide have expressed interest in joining CSL since the group was formed.

Trahan states that a lack of clear and accurate equipment standards will adversely affect the rate of solar adoption in the lighting industry, and that CSL will take a leadership to develop a fair and comprehensive evaluation of commercial-scale lighting systems.

“Consumer frustration over the lack of independent solar powered lighting standards including effective sizing of today’s high technology products is on the rise and left unaddressed, will adversely affect the rate of solar lighting adoption,” Trahan said. “Working with a broad spectrum of product and component makers, we will aggressively reach out to local, state and federal government and commercial customers, specifiers and everyone else in a decision making position and educate them on best practices when it comes to procuring solar lighting,” he said.

Last July, CSL released the first in a series of CSL Recommended Practices reports called “Solar Lighting Recommended Practices: Introduction.” A more detailed report will be made available this summer.

The original paper outlines solar lighting system sizing gaps in today’s recognized industry standards and the importance for a specific standard that directly addresses solar lighting. The report also defines the process of selecting and configuring a solar lighting system to ensure that the system will operate reliably 365 days a year.

Report Has Connecticut Leading the U.S. In Green Job Projection

Last week, a report was released that found that Connecticut was the top state for green jobs potentially created during the first quarter of 2012.  I say potentially because the findings  are based on announced projects. 

The report (pdf) was produced by Environmental Entrepreneurs (E2), which according to its web site, is a national community of business leaders who promote sound environmental policy that builds economic prosperity. Read more »

Aetna Earns LEED® Recognition for Atrium Building

Hartford, Conn.- Building on its demonstrated commitment to sustainability, Aetna, one of the nation’s leading diversified health care benefits companies, has earned the prestigious Leadership in Environmental Design (LEED®) Silver Certification for the nearly two-year-long renovation of the Atrium building on its Hartford campus. The building is adjacent to the eastern side of Aetna’s original headquarters on Farmington Avenue.

Bestowed by the U.S. Green Building Council, the prestigious LEED award recognizes that Aetna has met aggressive sustainability goals for the Atrium project. The expansive top-to-bottom renovation of the 40-year-old structure included environmentally friendly upgrades that deliver on a comprehensive set of objectives ranging from improved indoor air quality to reduced energy use.

“LEED certification represents validation from an independent, third party that we are reducing our carbon footprint,” said Michael Marshall, head of Asset Management, Real Estate Services. “The Atrium building project was an enormous undertaking. We modernized a 500,000-square-foot structure and at the same time made sure it meets stringent sustainability standards. It demonstrates our commitment to being a socially and environmentally responsible company.”

Although work on the Atrium building was largely completed in 2010, LEED certification was several years in the making.

The certification process included monitoring of the building’s performance over a period of time to ensure the intendedoutcomes were being achieved.

The scope of measurement and documentation covered the following components.

– The site: Aetna employed a “green” maintenance program for lawns and plantings, and implemented reduced irrigation practices.

– Water conservation: Bathrooms were designed with low-flow sensor faucets and dual flush water closets. Water use is an estimated 35 percent lower than with standard fixtures.

– Energy reduction: The entire lighting system was re-lamped to reduce total wattage, saving Aetna an estimated $189,000 annually; more than 1,000 solar panels were installed providing more than 6 percent of the daily electrical energy required; and certified “Green-E” energy is being purchased for more than 15 percent of the building load for at least five years.

– Materials: Recycled content or rapid renewable materials were used for at least 10 percent of new building components; 50 percent of construction waste was diverted into recycling programs.

– Indoor air: The ventilation system was designed to increase the use of outside air; high efficiency filters are used in ductwork and a certified green cleaning service has been employed to reduce the environmental impact of cleaning solvents.

– Design innovation: Roof skylights were designed to bring daylight into the B-level office area, and all enclosed offices maximize daylight coverage.

– New furniture: All workspace furniture is LEED certified. Work station tables and surfaces use up to 70 percent recycled materials.

This is the second time Aetna has earned LEED recognition. Several years ago Aetna was awarded LEED Silver Certification for the construction of a new customer center within the 80-year-old original headquarters building designed by James Gamble Rogers.

The LEED recognitions add to Aetna’s long history of initiatives designed to reduce the company’s carbon footprint.

Aetna has recycled fluorescent light bulbs since 1994, long before it was required, and has recycled paper, cardboard, glass and plastic bottles for many years. Aetna continues to raise the bar for environmentally conscious companies.

Recent accomplishments include the following.

– Aetna’s building #2 in Blue Bell, Pa, was recently recognized with a federal Environmental Protection Agency (EPA) Energy Star designation. To earn the Energy Star a building must demonstrate energy efficiency based on EPA guidelines.

– Aetna in March installed electric vehicle charging stations on the Hartford and Blue Bell campuses to help encourage employees to drive electric/hybrid cars to work and further reduce the company’s carbon footprint.

– Aetna continues to reduce its carbon footprint with a telework program that saved an estimated 65 million miles of driving in 2011, saving more than 2 million gallons of gas and reducing carbon dioxide emissions by more than 23,000 metric tons.

– Through the use of Energy Star devices, automatic shut-off switches and innovative approaches, Aetna last year noted a reduction in energy use for the first time at all of its major Aetna’s owned facilities in the previous year.

– Aetna is a participant in the Business Roundtable’s “Climate Resolve” initiative and was a charter member in the EPA’s WasteWise program.

– Aetna in 2009 was honored with a Connecticut Climate Change Leadership Award for innovative efforts to address global climate change.


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